Preventing Improper Payments Act
Source: Congress.gov ·
317 words in original text
What This Bill Does
This bill changes how the federal government treats new programs that make large payments. It says that new federal programs paying more than $100 million per year must be watched for improper payments (payments made by mistake or to the wrong people). The bill also changes when federal agencies must report on improper payments.
Who It Affects
Federal agencies that create new programs or activities making more than $100 million in payments each year.
Key Provisions
• New federal programs or activities that make more than $100 million in payments in a fiscal year must be treated as programs that may be susceptible to significant improper payments (Sec. 2)
• The reporting requirement now applies to each fiscal year, rather than just fiscal years 2019 and 2020 (Sec. 3)
What Changes
If this becomes law, new federal programs paying over $100 million per year will automatically be considered at risk for improper payments. This means they will be subject to oversight rules designed to catch and prevent payment errors. Additionally, the reporting requirement that previously ended after 2020 will continue for all future fiscal years.
Important Definitions
Improper payments: Payments made by mistake, to the wrong person, or in the wrong amount.
Important: This plain English summary was generated by AI and is provided for informational purposes only.
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